skill gap analysis report for tourism, travel, hospitality and trade

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Disclaimer for the Skill Gap Report:

NSDC engaged IMaCS (ICRA Management Consulting Services Limited) to prepare this report, which is based on independent research and analysis done by IMaCS. This report is not based or derived from any other report or research paper. Any similarity with any other paper may purely be a co-incidence.

All rights reserved. All copyright in this report and related works is solely and exclusively owned by NSDC. The same may not be reproduced, wholly or in part in any material form (including photocopying or storing it in any medium by electronic means and whether or not transiently or incidentally to some other use of this presentation), modified or in any manner communicated to any third party except with the written approval of NSDC.

This report is for information purposes only. While due care has been taken during the compilation of this report to ensure that the information is accurate to the best of IMaCSs’ and NSDC’s knowledge and belief, the content is not to be construed in any manner whatsoever as a substitute for professional advice.

IMaCS and NSDC neither recommend nor endorse any specific products or services that may have been mentioned in this report and nor do they assume any liability or responsibility for the outcome of decisions taken as a result of any reliance placed in this report.

Neither IMaCS nor NSDC shall be liable for any direct or indirect damages that may arise due to any act or omission on the part of the user due to any reliance placed or guidancetaken from any portion of this report.

Human Resource and 

Skill Requirements in 

the Tourism Industry  

 

 

Study on mapping of human resource skill     

gaps in India till 2022 

 

Human Resource and Skill Requirements of the Tourism Sector

Page 2 of 59

Table of Contents

1.  Environment Scanning and Competitiveness of Tourism Industry ......................................... 5 

1.1.  The Global Tourism Industry .................................................................................................. 5 

1.2.  Global Tourism Industry Outlook ........................................................................................... 6 

1.3.  Tourism Industry in India ....................................................................................................... 8 

1.4.  Forms of Tourism in India .................................................................................................... 12 

1.5.  Sub-segments of tourism industry ......................................................................................... 14 

1.6.  Demand Drivers, Success & Risk Factors ............................................................................ 18 

1.7.  India’s Position in the World ................................................................................................ 19 

1.8.  Indian Tourism Industry Outlook ......................................................................................... 21 

2.  Human Resource and Skill Requirements in the Tourism Industry ...................................... 22 

2.1.  Employment Pattern .............................................................................................................. 22 

2.2.  Skill Requirements and Gaps in Travel and Tour Operators Segment ................................. 22 

2.3.  Skill Requirements and Gaps in Hotels & Restaurants Segment .......................................... 31 

2.4.  Employment Intensity in Hotels and Restaurants ................................................................. 43 

3.  Current Skill Development Initiatives in the Tourism Industry ............................................ 45 

3.1.  NCHMCT, IHM, FCI programmes ....................................................................................... 45 

3.2.  Capacity Building for Service Providers ............................................................................... 47 

3.3.  Indian Institutes of Tourism and Travel Management (IITTM) ........................................... 48 

4.  Projected Size and Human Resource Requirement ................................................................. 50 

4.1.  Projected Size of the Industry ............................................................................................... 50 

4.2.  Projected Human Resource Requirement for Tourism Industry ........................................... 50 

4.3.  Projected Human Resource Requirement for Hotel Segment ............................................... 51 

4.4.  Projected Human Resource Requirement for Restaurants Segment ..................................... 53 

4.5.  Projected Human Resource Requirement for Tour Operators Segment ............................... 54 

4.6.  Possible Focus areas for Skill Building ................................................................................ 55 

Human Resource and Skill Requirements of the Tourism Sector

Page 3 of 59

List of Figures

Figure 1: Inbound Tourism, 1950-2008 .................................................................................................. 5 

Figure 2: Inbound Tourism by Purpose of Visit (% Share), 2007 .......................................................... 6 

Figure 3: International Tourist Arrivals (in ‘000s), 1950-2022 .............................................................. 6 

Figure 4: Foreign Tourist Arrival in India (million), 1998-2008 ............................................................ 8 

Figure 5: Foreign Tourist Arrival (FTA) in India from Different Regions (in million) ......................... 8 

Figure 6: Foreign Exchange Earnings (FEE), INR & US $ .................................................................... 9 

Figure 7: Number of Outbound Indians (millions), 1998-2007 ............................................................ 10 

Figure 8: Number of Domestic Tourist Visits to All States/UTs (millions), 1998-2007 ...................... 11 

Figure 9: Tourism Supply Chain ........................................................................................................... 12 

Figure 10: Sub-segments of Tourism Industry ..................................................................................... 14 

Figure 11: Tourism Segment and Growth Drivers ................................................................................ 18 

Figure 12: India’s Share in World Travel Receipt & World FTA, 1998-2008 ..................................... 20 

Figure 13: Profile of persons employed in Travel and Tour Operators Segment ................................. 22 

Figure 14: Function-wise distribution of Human Resource in Travel and Tour Operators Segment ... 23 

Figure 15: Overall Structure of Hotels & Restaurants .......................................................................... 31 

Figure 16: Profile of People at Top Management Level ....................................................................... 33 

Figure 17: Profile of People in Front Office ......................................................................................... 33 

Figure 18: Profile of People in Food and Beverage - Services ............................................................. 36 

Figure 19: Profile of People in Food Production / F&B - Kitchen ....................................................... 39 

Figure 20: Profile of People in Housekeeping and Maintenance .......................................................... 41 

Figure 21: Projected Size of Tourism Industry (Rs. billion) ................................................................. 50 

List of Tables

Table 1: World Travel & Tourism Estimates and Forecasts – 2009-2022 .............................................. 7 

Table 2: Top 10 States/UTs of India in Number of International Tourist Visit .................................... 10 

Table 3: Top 10 States/UTs of India in Number of Domestic Tourist Visit ......................................... 11 

Table 4: Demand Supply Scenario for Hotel Rooms, 2006 .................................................................. 16 

Table 5: All India Estimated Demand for Hotel Rooms – 2010 & 2015 .............................................. 16 

Table 6: Key Organised Players in Tour Operators and Travel Agency Segment ............................... 18 

Table 7: Foreign Tourist Arrival (FTA) in World & India and India’s Rank ....................................... 20 

Table 8: Education-wise distribution of Human Resource in Travel and Tour Operator Segment ...... 23 

Table 9: Skill Requirements and Skill Gaps Common to Travel and Tour Operators .......................... 24 

Table 10: Skill Requirements and Skill Gaps for a Guide .................................................................... 29 

Table 11: Function-wise Distribution of Human Resource – Hotels and Restaurants .......................... 31 

Human Resource and Skill Requirements of the Tourism Sector

Page 4 of 59

Table 12: Education-wise distribution of Human Resource in Hotels and Restaurants ....................... 32 

Table 13: Skill Requirements and Skill Gaps in Front Office .............................................................. 33 

Table 14: Skill Requirements and Skill Gaps in Food and Beverage - Services .................................. 36 

Table 15: Skill Requirements and Skill Gaps in Food Production ....................................................... 39 

Table 16: Skill Requirements in Housekeeping and Maintenance ....................................................... 41 

Table 17: Employment Intensity and Profile of People – Hotels .......................................................... 43 

Table 18: Employment Intensity and Profile of People - Restaurants .................................................. 43 

Table 19: PG, Diploma, and Certificate Courses offered by IHMs through NCHMCT ....................... 46 

Table 20: Certificate Courses under the CBSP scheme ........................................................................ 47 

Table 21: Courses offered under IITTM ............................................................................................... 48 

Table 22: Direct and Indirect Employment in Tourism Industry (‘000 jobs) – 2008-2022 .................. 50 

Table 23: Human Resource Requirements in Tourism Industry (in ’000s) .......................................... 51 

Table 24: Projected human resource requirement –Hotels (in ‘000s) ................................................... 51 

Table 25: Incremental Human Resource Requirement for Hotels (in ‘000s) till 2022 ......................... 52 

Table 26: A Further Break-Up of Incremental Human Resource Requirement till 2022 – Hotel (in

‘000s) .................................................................................................................................................... 52 

Table 27: Employment Forecasts (in thousands) –Restaurants ............................................................ 53 

Table 28: Incremental Employment for Conventional Restaurants till 2022 (in ‘000s) ....................... 53 

Table 26: A Further Break Up of Manpower Requirement – Conventional Restaurants (in ‘000s) .... 54 

Table 30: Function-wise Incremental Human Resource Requirement till 2022 – Travel Trade/Tour

Operators (in ‘000s) .............................................................................................................................. 54 

Table 31: Focus Areas – Hotels and Restaurants .................................................................................. 55 

Table 32: Focus Areas – Travel and Tour Operators ............................................................................ 57 

Human Resource and Skill Requirements of the Tourism Sector

Page 5 of 59

1. Environment Scanning and Competitiveness of Tourism

Industry

1.1. The Global Tourism Industry

World tourism enjoyed its fourth consecutive year of growth in 2008. International tourist arrivals

grew by 2.3% in 2008 to reach a figure of over 924 million. This represented 21 million more arrivals

than in 2007. The growth in international tourist arrival in 2008, 2.3%, is lower compared to 6.6% in

2007.

Figure 1: Inbound Tourism, 1950-2008

Source: UNWTO1- Tourism highlights 2008

In 2007, just over half of all international tourist arrivals were motivated by leisure, recreation and

holidays (51% - 458 million). Business travel accounted for some 15% (138 million), and 27%

represented travel for other purposes, such as visiting friends and relatives (VFR), religious

reasons/pilgrimages, health treatment, etc. (240 million). The purpose of visit for the remaining 7% of

arrivals was not specified.

1 UNWTO – World Tourism Organization

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Human Resource and Skill Requirements of the Tourism Sector

Page 7 of 59

The total tourist arrivals by region shows that by 2020 the top three receiving regions will be Europe

(717 million tourists), East Asia and the Pacific (397 million) and Americas (282 million), followed

by Africa, the Middle East and South Asia.

East Asia and the Pacific, South Asia, the Middle East and Africa are forecasted to record growth at

rates of over 5% per year, compared to the world average of 4.1%. The more mature regions, Europe

and Americas, are anticipated to show lower than average growth rates. Europe will maintain the

highest share of world arrivals, although there will be a decline from 60% in 1995 to 46% in 2020.

As per the World Travel and Tourism Council, the World Travel & Tourism (T&T) industry is

expected to post US $ 7,340 billion of economic activity, and this is forecasted to grow to US $

14,382 billion by 2019. It also estimates that T&T accounts for approximately 7.6% of global

employment. At present there are 77.3 million T&T Direct Industry jobs and 219.8 million jobs in the

T&T Economy (including indirect), and these will rise to 97.8 million T&T Direct Industry jobs and

275.7 million T&T Economy jobs by 2019.

Based on the long term growth rate, IMaCS estimates that the World Travel & Tourism industry to

post US $ 17,615 billion of economic activity by 2022.

Table 1: World Travel & Tourism Estimates and Forecasts – 2009-2022

Particulars

US $ Billion

US $ Billion

US $ Billion Personal Travel & Tourism 2,990,470 5,574,780 6,720,077 Business Travel 745,085 1,375,690 1,653,541 Government Expenditures 404,183 709,336 839,719 Capital Investment 1,220,100 2,589,660 3,245,615 Visitor Exports 1,079,430 2,130,950 2,613,286 Other Exports 900,731 2,001,090 2,542,542 T&T Demand2 7,339,990 14,381,500 17,614,779 Direct Industry GDP3 1,870,080 3,396,430 4,062,295 T&T Economy GDP4 5,473,830 10,478,000 12,731,352 Direct Industry Employment* 77,276 97,784 104,938 T&T Economy Employment* 219,810 275,688 295,073

Source: World Travel & Tourism Council; IMaCS analysis; *’000 jobs;

2 Demand side aggregate of tourism activity in the economy 3 This is the explicitly defined Supply-side Industry contribution of T&T that can be compared one-for-one with the GDP and Employment contribution of other industries in the economy. Establishment in this category include traditional T&T providers such as airlines, hotels, car rental companies, etc 4 This is the upstream economy contribution which comes about from suppliers to the traditional T&T industry. Establishments in this category include fuel and catering companies, laundry services, accounting firms, etc

2009 2019 2022

Human Resource and Skill Requirements of the Tourism Sector

Page 8 of 59

1.3. Tourism Industry in India

The T&T industry in India accounted for approximately 6% of GDP and 30.5 million jobs (including

direct and indirect) in 2008. The Travel and Tourism Competitiveness Report 2009 brought out by

World Economic Forum, ranks India as 11th in the Asia-Pacific region and 62nd overall in a list of 133

assessed countries in 2009, up three places since 2008. In terms of travel, India stands 9th in the index

of relative cost of access (ticket taxes and airport charges) to international air transport services,

having almost the lowest costs in the world.

We will look at the three broad categories to understand the tourist traffic in India

• International tourist arrival in India

• Outbound tourism from India

• Domestic tourist traffic in India.

1.3.1. International Tourist Arrival in India

Tourism is one of the largest net earners of foreign exchange for the country recording earnings of US

$11,747 million in 2008, a growth of 9.5% YoY, according to the Ministry of Tourism. The

International Tourist Arrival (FTA) has increased from 2.4 million in 1998 to 5.37 million in 2008.

FTA registered a growth of 5.6% in 2008 over 2007.

Figure 4: Foreign Tourist Arrival in India (million), 1998-2008

Source: Ministry of Tourism, Government of India Figure 5: Foreign Tourist Arrival (FTA) in India from Different Regions (in million)

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Human Resource and Skill Requirements of the Tourism Sector

Page 9 of 59

Source: Indian Tourism Statistics, 2007 – Ministry of Tourism, Government of India

FTAs in India from different regions of the world during last three years are depicted in the above

figure. It is clear that the FTAs in India have been increasing from all regions during the last three

years. The FTAs in India in 2007 were the highest from Western Europe (33.2%) followed by North

America (19.8%), South Asia (19.3%), East Asia (6.9%), South East Asia (6%).

The Foreign Exchange Earnings (FEE) from tourism in India in 2008 were Rs.50,730 crore. In US $

terms it was US $ 11.75 billion. The FEE from tourism grew by 9.5% in US $ terms, and by 14.4% in

Indian Rupee (INR) terms in 2008 as compared to 2007.

Figure 6: Foreign Exchange Earnings (FEE), INR & US $

Source: Indian Tourism Statistics, 2007 – Ministry of Tourism, Government of India

Top 10 States/UTs to attract international tourist in India in 2007 and their percentage share of total

international tourist visits is provided in the table below.

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Human Resource and Skill Requirements of the Tourism Sector

Page 10 of 59

Table 2: Top 10 States/UTs of India in Number of International Tourist Visit

S. No. State % share

1 Delhi 15.3

2 Maharashtra 14.6

3 Tamil Nadu 12.9

4 Uttar Pradesh 11.3

5 Rajasthan 10.6

6 West Bengal 8.8

7 Andhra Pradesh 5.9

8 Karnataka 4.1

9 Kerala 3.9

10 Goa 3.0

Total of Top 10 States/UTs 90.4

Source: Ministry of Tourism, Government of India

1.3.2. Outbound Tourism

The number of outbound Indians has been consistently rising over the last ten years. It increased from

3.8 million in 1998, to 9.8 million in 2007 with a compound annual growth rate of 11 %.

Figure 7: Number of Outbound Indians (millions), 1998-2007

Source: Indian Tourism Statistics, 2007 – Ministry of Tourism, Government of India

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Human Resource and Skill Requirements of the Tourism Sector

Page 11 of 59

1.3.3. Domestic Tourist Traffic in India

The domestic tourist visits to all States/UTs have risen from 168.2 million in 1998 to 526.6 million in

2007 at a compounded annual growth rate of 13.5%.

Figure 8: Number of Domestic Tourist Visits to All States/UTs (millions), 1998-2007

Source: Indian Tourism Statistics, 2007 – Ministry of Tourism, Government of India

Top 10 States/UTs to attract domestic tourist in India in 2007 and their percentage share of total

domestic tourist visits is provided in the table below.

Table 3: Top 10 States/UTs of India in Number of Domestic Tourist Visit

S. No. State % share

1 Andhra Pradesh 24.3

2 Uttar Pradesh 22.1

3 Tamil Nadu 13.5

4 Rajasthan 7.2

5 Karnataka 4.9

6 Uttarakhand 3.8

7 Maharashtra 3.7

8 West Bengal 3.5

9 Madhya Pradesh 2.6

10 Gujarat 2.6

Total of Top 10 States/UTs 88.2

Source: Ministry of Tourism, Government of India

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Human Resource and Skill Requirements of the Tourism Sector

Page 13 of 59

• Adventure tourism – India offers a wide range of adventure sports for tourists. Trekking and

skiing in the Himalayas, white water rafting on the Ganges and Beas, camel and jeep safaris

in the deserts of Rajasthan, paragliding in Himachal, water sports in Goa and scuba diving in

Lakshadweep and Andaman & Nicobar are just some of the options available for adventure

tourists.

• Rural tourism – In the developed countries, a new style of tourism of visiting village settings

to experience and live a relaxed and healthy lifestyle has already emerged and India is also

following the suit to some extent. In this view, 31 villages across India have been earmarked

for development, and the Ministry of Tourism is working with local committees to develop

tourism. The Ministry of Tourism is expected to develop institutional mechanisms for

supporting, promoting and organising large numbers of fairs, festivals and craft bazaars in

rural areas, which will provide exposure and recognition, as well as an additional flow of

income to local artisans.

• MICE (business) tourism – With the expansion in the network of airlines operation on the

domestic routes, better tourist surface transport systems including the Indian Railways, new

centres of information technology, many new convention centres, hotels and meeting

facilities, India is now an important MICE (Meetings, Incentives, Conferences & Exhibitions)

destination. The Indian sub-continent is emerging as one of the finest Incentive destinations in

the world owing to the diverse culture and geography.

• Medical tourism – Medical tourism is promoted through suitable packaging of identified best

hospitals and price banding for various specific treatments. India offers all kinds of medical

and health related treatments at around one-fifth the cost in European countries or the USA.

As health care costs skyrocket, patients in the developed world are looking overseas for

medical treatment. India is capitalising on its low costs and highly trained doctors to appeal to

these medical tourists. India is now emerging as one of the hot destinations for medical

tourism besides Singapore, Thailand, Hong Kong, Malaysia, Philippines, Columbia, Costa

Rica and UAE among other destinations. Players are looking to tap this opportunity, and

hotels and resorts in the South, especially in Kerala and some in UP, have been cashing in on

the trend. In 2007, Indian hospitals treated 450,000 patients from other countries against the

highest 1.2 million in Thailand. According to the study conducted by the Confederation of

Indian Industry (CII), foreign patients are visiting India with an increasing rate of 15%

annually. The same study also estimates that medical tourism can contribute up to Rs. 100

Human Resource and Skill Requirements of the Tourism Sector

Page 14 of 59

billion (US $ 2-2.5 billion) in revenue by 2012, and account for 3-5 % of the total healthcare

delivery market.

• Buddhist circuit – There are various popular Buddhist tourist places in India, such as

Bodhgaya, Rajgir, Nalanda, Patna, Vaishali, Kushinagar, Sarnath, etc. which attracts

significant tourists round the year.

• Religious tourism – India has a host of religious places stretching from Kashmir to

Kanyakumari. This spawns religious tourism. Illustratively, important destinations include

Tirupati, Madurai, Rameswaram, Varnasi, Dwaraka, Amarnath, Badrinath and Kedarnath, to

name a few.

1.5. Sub-segments of tourism industry

The tourism industry in India can be categorised under three major sub segments as depicted below:

Figure 10: Sub-segments of Tourism Industry

We will cover hotels & restaurants and tour operators in further detail in this report. Travel industry is

being covered in Transport and Logistics section of the report.

1.5.1. Hotels and Restaurants

1.5.1.1. Overview

The Hotel & Restaurants Industry has contributed between 1.2% and 1.5% of the GDP over the last

seven to eight years. The Ministry of Tourism estimates that there are more than 8,700 hotels at 54

Tourism Industry

Hotel & Restsurants

Tour Operators

Travel Industry

Human Resource and Skill Requirements of the Tourism Sector

Page 15 of 59

key locations across the country with a total room supply of about 174,000 including hotels in the

classified, approved but not classified, and licensed by the state governments but not approved

categories.

According to an estimate5, the Indian Hotels & Restaurant Industry is expected to be Rs. 827.76

billion in by 2009-10 growing at compounded annual growth rate of 11% over 2006-07 (Rs. 604.32

billion).

1.5.1.2. Major players

In the large/luxury hotels segment there are about 11 long-standing players such as ITC Hotels, Asian

Hotels, The Oberoi Group of Hotels, Hotel Leela Ventures, ITDC, Indian Hotels, The Park Hotels and

international players like Hilton Hotels, Marriott International, Le Meridien Hotels & Resorts, and

Radisson Hotels & Resorts. There are about 16 listed hotel groups in the mid-segment including

Bharat Hotels, Oriental Hotels, Nehru Place Hotels, Jaypee Hotels, Piem Hotels and Taj GVK Hotels.

In addition, there are more than 90 listed hotels and resorts in the small/mid sized segment including

Country Club, EIH Associate Hotels, Kamat Hotels and Mahindra Holidays and Resorts. Apart from

these, as mentioned earlier, there are a number of guest houses and hotels, particularly in the budget

and small hotel segments, which are primarily run by localised players.

1.5.1.3. Hotel Industry Outlook

The hotel industry is presently undergoing rapid growth particularly in the luxury category.

International hotel chains such as Six Continents, Carlson Hospitality and Marriott are looking to

increase their capacity in India, one of the fastest growing hospitality markets across the globe. A host

of mid-market and budget hotel brands like Accor are also chalking entry plans for the market.

Based on the study conducted by the Ministry of Tourism, the existing (2006) demand and supply of

rooms per annum are presented in the table below.

5 Cygnus research report on Indian Hotel Industry – Oct-08

Human Resource and Skill Requirements of the Tourism Sector

Page 16 of 59

Table 4: Demand Supply Scenario for Hotel Rooms, 2006

Category Supply

Demand Shortage

Classified 84,259 133,744 99,140 157,365 14,881 23,621

Others 89,728 142,425 82,456 130,883

Total 173,987 276,170 181,596 288,248 7,609 12,078Source: Ministry of Tourism; *54 key locations identified all over the India as sample for the study

The same study also forecasts the estimated demand for hotel rooms per annum assuming that the past

growth in tourist traffic will also continue in future. The same is presented below.

Table 5: All India Estimated Demand for Hotel Rooms – 2010 & 2015

Category 2010 2015

Classified 342,053 868,913

Others 240,680 515,095

Total 582,733 1,384,008

Source: Ministry of Tourism

In 2010, 58.7% of the total demand is estimated to be in the classified category and 53% of the total

classified demand is estimated to be in the budget category and the rest in luxury category. In 2015,

the share of classified category is estimated to increase to 62.7% with budget category’s share

decreasing to approximately 47%.

1.5.1.4. Emerging Trends

Some of the emerging trends of the Indian hotel industry are discussed below:

• Service Apartments - Service apartments are fully furnished and self-catering units combining

the benefits of a home along with the facility such as house-keeping, room-service, 24-hour

receptionists, security and travel desk. Besides this, they also contain other amenities such as 24-

hour security, power backup, leisure activities, home appliances, refrigerator, self-help kitchen,

laundry, telephone, high-speed internet connectivity, fire safety, private parking, health clubs with

some of the apartments even offering value-add services for tourists and NRI groups such as site

seeing and guided shopping for spouses. Service apartments are well equipped apartments

specifically designed for experts with short stays in the country to give them and their family the

comforts as well as the privacy of home. The boom in ITES and software businesses has acted as

54 key

locations* All India

54 key

locations*All India

54 key

locations* All India

Human Resource and Skill Requirements of the Tourism Sector

Page 17 of 59

a catalyst in the growth of all sorts of accommodation businesses along with serviced apartments.

Service apartment also fulfills all kinds of short-term and long-term accommodation needs of

individuals, corporate houses and MNCs with quality living.

• Spas - The need for solitude, space and peace to recharge oneself has played an important role in

the growth of spas in the country. A spa offers relaxation and rejuvenation to its clients. Luxuries

at the spas include facials, baths, body therapies through international procedures as well as Thai

or Indian classics, body treatments, facials, massages, aroma therapy, hair removal, hydrotherapy,

manicures and pedicures, customised packages to deal with specific problems, beauty advice and

therapies and perfectly planned diets.

• Budget hotels - Budget hotels in India witnessed tremendous growth due to strong domestic

travel and positive economic and investment environment. The minimum expectation of any

budget traveller is a clean and comfortable room (air-conditioned) with a refrigerator, a 17 inch

flat-screen television, tea and coffee makers at the bedside, in-house gym, cyber café, ATM

machine, 24-hour automatic check-in kiosk and wi-fi facilities. This is the new definition that

budget hotels have given to the hotel industry by satisfying the value for money concept.

• Wildlife resorts - The wildlife lodges segment has caught the attention of hospitality companies.

For example, Taj Safaris, a JV between Taj Hotels and CC Africa, has opened two luxury wildlife

resorts in Madhya Pradesh. Leisure Hotels is also targeting to enter the wildlife lodges segment

with a lodge near Kanha National Park in Madhya Pradesh. CC Africa is planning to set up four

new safari lodges in India—two in South India, one in Kaziranga (Assam) and another in Gir

(Gujarat). These new lodges are expected to be fully operational by October 2011. Fortune Park

Hotels, a subsidiary of ITC Ltd, is also one of the hospitality companies planning to enter the

wildlife lodges segment. Some of the other high-end luxury wildlife lodges are the The Oberoi

Vanyavilas and Aman-i-khas at Ranthambore. In the recent past, high-end luxury tourism has

been promoted by the Ministry of Tourism and the growth in the high-end wildlife lodges is result

of it.

1.5.2. Tour Operators

1.5.2.1. Overview

In order to encourage quality standards and services, the Ministry of Tourism approves travel agents,

tour operators, tourist operators and adventure tour operators in the country to strict guidelines. As per

the estimate of Ministry of Tourism, there are nearly 6,000 travel trade companies and firms

comprising of tour operators, travel agents and tourist transporters.

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Human Resource and Skill Requirements of the Tourism Sector

Page 19 of 59

• Branding & Marketing – Having the right tourism products is only one part of the equation.

Branding the products and marketing the products to the right set of people are important factors

to ensure the success of any tourism product. E.g., operators such as Cox and Kings and SOTC

who have developed deep capabilities in these areas.

• Networking and tie-ups – Ability to network and develop tie-ups with various downstream

service providers is also an important factor the success of any firm as it ensures consistent and

reliable service to the customers (tourists). E.g., the case of Star Alliance in airlines.

• Packaging – Ability to provide an end-to-end services is also very important in tourism industry,

more so in case of first time visitors who have less knowledge about the destination. Also as

different people have different needs, it is important that the service provider offers focused

offerings based on the need of the tourist. E.g., Rishikesh as a destination can be packaged as a

religious tourist destination as well as an adventure tourist destination.

The tourism industry is exposed to the following risks:

• Terrorism – Terrorism is a major risk as it can wipe out a destination from the tourism map.

• Global meltdown – Global meltdown and fear of recession affects tourism activity negatively as

tourists are less inclined to take trips and spend on leisure activities.

• Pandemics – Pandemics like H1N1 flu, SARS, etc. are also major risks to tourism.

• Poor infrastructure – Poor infrastructure such as sub-standard airports, inadequate hotel and

room supply, etc. are also major risk as it can deter tourist from visiting a particular destination.

• Rising cost – Rising costs such as that of the fuel, which will have a spiralling effect on various

activities in the value chain, also poses a risk to tourism as it may make the product unaffordable

to certain segments of tourists.

1.7. India’s Position in the World

India’s share in international tourist arrival as well as rank has improved over the last 10 years. Both

have significantly improved since 2002.

Human Resource and Skill Requirements of the Tourism Sector

Page 20 of 59

Table 7: Foreign Tourist Arrival (FTA) in World & India and India’s Rank

Year World FTA India FTA India’s Rank

1998 614.3 2.36 47 th

1999 637.4 2.48 46 th

2000 684.7 2.65 50 th

2001 684.4 2.54 51st

2002 704.7 2.38 54th

2003 692.2 2.73 51st

2004 761.4 3.46 44th

2005 803.0 3.92 43rd

2006 847.0 4.45 44th

2007 903.0 5.08 42nd

2008 924.0 5.37 -

Source: UNWTO; Ministry of Tourism, India

Figure 12: India’s Share in World Travel Receipt & World FTA, 1998-2008

Source: UNWTO; Ministry of Tourism, India

World travel receipts have increased from US $ 444.1 billion in 1998 to US $ 856.0 billion in 2007 at

a compounded annual growth rate of 7.6%. At the same time the travel receipt (foreign) in India has

risen from US $ 2.95 billion in 1998 to US $ 10.73 billion at a compounded annual growth rate of

15.4%.

While the growth in tourism has been impressive, India’s share in total global tourism arrivals and

earning is quite insignificant and is expected to improve in the next decade.

0.00%

0.20%

0.40%

0.60%

0.80%

1.00%

1.20%

1.40%

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

India’s share in World FTA

India’s share in World Travel Receipt

Human Resource and Skill Requirements of the Tourism Sector

Page 21 of 59

1.8. Indian Tourism Industry Outlook

Indian tourism industry has expanded rapidly over the past few years and is well poised to grow at

faster pace in the coming years underpinned by the government support, rising income level and

various international sports events. Government of India’s ‘Incredible India’ campaign launched in

2002 has also been quite successful.

The World Travel & Tourism Council estimates that the Indian Travel & Tourism (T&T) industry

will post Rs 4,412.7 billion (US $ 91.7 billion) of economic activity in 2009, growing to Rs. 14,601.7

billion (US $ 266.1 billion) by 2019 registering a nominal compounded annual growth of 12.7%. It

also expects the Indian T&T industry to grow at 7.7% per annum in real terms between 2009 & 2019.

Based on the long term growth rate, IMaCS estimates that the India Travel & Tourism (T&T) industry

to post Rs. 21,011 billion of economic activity by 2022.

Human Resource and Skill Requirements of the Tourism Sector

Page 22 of 59

2. Human Resource and Skill Requirements in the Tourism

Industry

2.1. Employment Pattern

As per the Planning Commission an investment of Rs.10 lakh creates 78 jobs in the Tourism sector

while the same generates just 18 jobs in the Manufacturing and 45 in the Agriculture sector. Currently

Travel & Tourism, being employment intensive, provides employment to approximately 31 million

(both direct & indirect) people throughout the country and is one of the largest employers in the

country, this number is expected to rise to over 40 million by 2019 and over 43 million by 2022. The

skill requirements and skill gaps are presented for the following major segments driving employment

in the Tourism Industry:

Travel and Tour Operators

Hotels and Restaurants.

2.2. Skill Requirements and Gaps in Travel and Tour Operators

Segment

The skill requirements in the Travel and Tour Operator segments are elaborated in this section.

The following figure details the profile of persons employed in the Travel and Tour Operators.

Figure 13: Profile of persons employed in Travel and Tour Operators Segment

Source: Primary Research and IMaCS analysis

Hr. Sec /Graduate/Basic certification course in

Ticketing, with 0-3 years of experience

Graduate/Basic certification course in

Ticketing, with 3-4 years of experience

Graduates/Masters/Basic/Advance certication

course in Ticketing, with over 5 years of

experience

Graduate/Masters, with over 8 years of

experienceBranch

Manager

Operations Manager

Team Leader

Travel Counsellors

Messenger / Delivery

Boys

Sales Manager

Team Leader/Deputy Sales Manager

Sales Exceutives

Human Resource and Skill Requirements of the Tourism Sector

Page 23 of 59

Apart from this, certain companies might have a separate Passport/Visa and Foreign Exchange

divisions too. The profile of the people in the department will be same as that of Travel Counsellors.

There are companies who outsource the Passport/Visa related works.

Figure 14: Function-wise distribution of Human Resource in Travel and Tour Operators Segment

Source: Ministry of Tourism, IMaCS analysis

The education-wise distribution of workforce is provided in the Table below:

Table 8: Education-wise distribution of Human Resource in Travel and Tour Operator Segment

Education Level % of people Functional area assigned

MBA, CA, CS,

ICWA

3% - 5% Management level as Branch

Manager or Divisional Manger

Post

Graduates/Graduates

25% - 35% Ticketing (Travel Counsellors),

Marketing and Sales,

Accounts/Finance department,

Foreign Exchange etc

Diploma /Certificate

course

42% - 45% Ticketing, Executives/Assistants

in various departments

High School and

below

15% - 30% Ticketing, Messenger/Delivery

boys

Total 100%

Source: Primary Research and IMaCS analysis

2.2.1. Skill Requirements and Skill Gaps in Travel and Tour Operators Segment

Ticketing25%

Accounts15%

Tours15%

Administration12%

Operations11%

Sales & Marketing

6%

Foreign Exchange

4%

Others12%

Human Resource and Skill Requirements of the Tourism Sector

Page 24 of 59

The following table presents the skill requirements and gaps across various functions and

hierarchical/reporting ‘levels’ in Travel and Tour operators segment.

Table 9: Skill Requirements and Skill Gaps Common to Travel and Tour Operators

Function Level Skills required Skill gaps

Operations Branch

Manager

Responsible for operation of

the branch.

Ability to build relationship

with the clients, especially

institutional.

Ensure all the customer

complaints are efficiently

handled.

Ability to promote various

travel and tour products of the

company.

Finalising tour itineraries.

Establishing tie up with

various downstream service

providers.

Ability to liaison with airline,

hotels and local community.

Leadership qualities.

Ability to provide on the job

training to the staff.

Rotation of staff and deciding

their roles and

responsibilities.

Hiring of staff depending

upon the requirement.

Excellent communication

skills.

Being presentable (as the role

is customer facing and

involves hospitality).

Inadequate ability to

handle customers

(Individual and/or

Corporate) with wide range

of needs.

Inadequate ability to

handle complaints

Lack of adequate IATA-

qualified personnel

Operations Operations Ability to oversee specific Inability to handle the

Human Resource and Skill Requirements of the Tourism Sector

Page 25 of 59

Function Level Skills required Skill gaps

Manager functions such as ticketing

and passport.

Ability to check the quality of

the work of Travel

Counsellors as a monitoring

mechanism.

Ability to resolve the issues

faced by Travel Counsellors.

Ability to resolve the issues

faced by the clients, which

have been identified through

the service calls given to the

clients on a regular basis.

Ability to monitor pricing,

ticketing and invoicing.

Ability to suggest ways to

streamline the processes to

ensure excellent service.

Ability to review processes

and procedures to ensure

maximum efficiency.

Ability to use the knowledge

of ticketing, that he/she has

gained over experience and/or

thorough the courses (from

IATA, UFTA, etc.) that

he/she has done.

situation during the crises

time – such as change in

tickets, sudden changes in

travel schedules.

Insufficient knowledge of

ticketing

Lack of adequate

presentation skills.

Insufficient people

management skills.

Inadequate time

management skills.

Team Leader Need to ensure that the

tickets, visa, etc. are issued

correctly and promptly by the

team.

Ability to act as a solution

provider for the team

members when they are

The following skills are

inadequate:

Time management

People management

Client handling

Human Resource and Skill Requirements of the Tourism Sector

Page 26 of 59

Function Level Skills required Skill gaps

unable to handle a situation.

Knowledge on various aspects

of ticketing.

Supervisory skill

Time management

Travel

Counsellors

Ability to understand the

needs of the customer and act

as their travel advisor.

Ability to effectively interact

with customers and prospects

and convert enquiries to sales.

Knowledge on various travel

routes both domestic and

international.

Ability to work in Central

Registration System (CRS)

for booking, cancelling,

splitting, reissue of tickets etc.

Knowledge on refunding

norms in case of partly

utilised tickets.

Knowledge on various

formalities (passport, visa

etc.) that the customer needs

to comply with in case of

outbound travels.

Ability to calculate the ticket

fare - should know their

components (such as

surcharge, service tax, etc.).

Adequate knowledge of hotels

available at various locations

in order to execute hotel

bookings.

Lack of adequate

geographical knowledge

(especially in case of

international travels)

leading to higher

turnaround time.

Need for better time

management

Lack of adequate

procedural knowledge on

Passports and Visas.

Need for adequate levels

of politeness while

handling calls.

Lack of knowledge of

client focussed/ customised

products.

Inability to maintain a

cordial relationship with

the corporate clients,

leading to

misunderstanding.

Human Resource and Skill Requirements of the Tourism Sector

Page 27 of 59

Function Level Skills required Skill gaps

Proper follow up with the

customers once the tickets are

booked and to record their

feedback.

Need to be proactive and

smart, especially the travel

counsellors holding positions

at Unique Selling Points

(USP) - locations at customer

premises.

Messenger /

Delivery boys

Housekeeping

Ability to interact with

customers at the time of

collecting travel related

documents / delivery of

tickets / returning the

documents.

Ability to interact with airline

personnel while meeting them

for getting endorsement.

Ability to interact with

officials in passport and visa

office, for document

submission and other

procedures.

Safe and on time delivery.

Lack of communication

skill

Inadequate behavioural

skills – such as being

polite, etc.

Sales Sales Manager Ability to oversee the smooth

running of the department.

Flair for language.

Ability to network with

clients

Studying the market to

identify potential clients.

Ability to build customised

Inadequate presentation

skills

Inadequate client

networking skills.

Insufficient creativity in

designing new products

based on the customer

requirement.

Human Resource and Skill Requirements of the Tourism Sector

Page 28 of 59

Function Level Skills required Skill gaps

products for clients depending

upon their requirements,

making effective

presentations, and winning

the business.

Need to ensure that the

expectations of customers are

met.

Need to motivate the team

leaders and the sales team.

Knowledge of a major CRS

Ability to maximise the sales

revenue.

Recommending areas for staff

training.

Deputy

Manager Sales/

Team leaders

Assisting sales staffs in

solving general problems.

Good communication skill.

Knowledge of a major CRS –

such as Abacus, Galileo,

Saber, Amadeus

Need to motivate the sales

team.

Meeting clients for feedback

and understanding their

requirements.

Reviewing travel history to

understand the customer

requirements

Carrying out market studies if

need be.

Inadequate communication

skill

Inadequate skills to

identify potential clients.

Problem solving ability

Inadequate knowledge of

CRS such as Abacus,

Galileo, Saber, Amadeus.

Sales

Executives

Need to be self driven and

result oriented.

Adequate team skills

Lack of adequate

communication skills –

ability to converse in

Human Resource and Skill Requirements of the Tourism Sector

Page 29 of 59

Function Level Skills required Skill gaps

Ability to conduct market

studies.

Ability to meet potential

clients and interact with them,

explaining the products

offered.

Good communication skills.

English, offer travel

solutions

Inadequate skill to

understand the client’s

requirements and respond

accordingly.

Inadequate attitude to work

in a team.

Travel and Tour operators might or might not have their own guides. Their functions might be

restricted to preparation of itinerary for tours, and booking hotels and tickets accordingly. Such

operators may even outsource ‘guiding’ in case of international tours by having a tie up with a similar

company abroad. A representative of the local tour operator (sometimes, even the Branch Manager)

will act as an ‘escort’ while the representative from the company in abroad will be acting as a ‘guide’.

In case of domestic tourism, either the tourist prefers to visit places independently or a local guide

will be hired/the tour operators will arrange for a guide to accompany the tourist. The guides in India

are regulated by Government of India and they have to compulsorily obtain a license for functioning

as a guide in any of the sites in India. The basic skill requirements and skill gaps are as follows:

Table 10: Skill Requirements and Skill Gaps for a Guide

Function Level Skills required Skill gaps

Services Meet and Greet

People

Ability to interact with airport

and ticket staff and coordinate

travel

High energy level

Good Communication skills

Inadequate energy level

when interacting with

customers.

Guide Good communication skills

Ability to manage customers

Verbal fluency and familiarity

with languages

Decision making skills

Problem solving skills

Inadequate communication

skills

Insufficient knowledge of

tourist places.

Inadequate skills of crises

management and time

Human Resource and Skill Requirements of the Tourism Sector

Page 30 of 59

Function Level Skills required Skill gaps

Ability to work in a team

Knowledge/awareness of the

places, people and culture

The knowledge of general

decorum.

Behavioural knowledge

Passion for travelling

Crises management

Willingness to work hard/long

time.

management.

Driver Special driving skills required

while driving on

mountainous/high risk

regions.

Ensuring safety of passengers

Awareness on driving rules

and regulations

Familiarity with routes

Ability to communicate and

being sensitive to tourists

Awareness on various hotels

and other locations in the

travel route.

Knowledge of First Aid

Ability to attend minor

problems in the vehicle e.g,

changing vehicles tires, other

minor mechanical problems,

etc.

Understanding the traveller’s

requirements in terms of

location preferences and

acting accordingly.

Knowledge of English (in

Lack of adequate

communication skills

(including English – when

interacting with tourists

such as international

tourists)

Inability to understand

traveller’s requirement.

Unable to handle crisis

situations.

Lack of awareness on

driving rules and

regulations.

Inadequate knowledge of

safety norms

Inadequate knowledge of

First Aid.

Human R

Func

Source: I

2

OfficSal

P

Resource and

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Industry input

2.3. Skill R

Table 11: Fu

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Human Resource and Skill Requirements of the Tourism Sector

Page 32 of 59

Table 12: Education-wise distribution of Human Resource in Hotels and Restaurants

Education Level % of people Functional area assigned

MBA, CA, CS,

ICWA

5% General Manager / Manager

Post

Graduates/Graduates

20% - 30% Managers / Supervisors /

Assistants - Front office, F&B

Services, Kitchen

(Chef/Cook/Steward), House

Keeping, Purchase, Sales, HR etc

Diploma 25% - 55% Chef, Steward, Line cook, F&B

services etc

High School and

below

20% - 40% Kitchen staffs, Front office – Bell

boys, Waiters/Servers,

Bartenders, Security guards,

Room service etc

Total 100%

Source: Primary Research and IMaCS analysis

Human Resource and Skill Requirements of the Tourism Sector

Page 33 of 59

2.3.1. Profile, Skill Requirements and Skill Gaps in Hotels & Restaurants

Figure 16: Profile of People at Top Management Level

Source: Primary Research and IMaCS analysis

Figure 17: Profile of People in Front Office

Source: Primary Research and IMaCS analysis

Table 13: Skill Requirements and Skill Gaps in Front Office

Post Graduate/Graduate/Diploma in Hotel Management, with over

5-8 years of experience

Post Graduate/Graduate, with

over 10 years of experience

General Manager

Front office manager

Housekeeping Executive

Director Food and Beverage

Executive Chef

Cheif Engineer

Purchase Manager

Sales Manager

Accounts Manager

HR Manager

High School, 0-4years of experience

Graduate/Diploma in Hotel Management, with 0-4

years of experience

Graduate/Diploma in Hotel Management, with over 5-8

years of experienceFront office

Manager

Front office assistant Travel desk Bell Captain

Bell Boys

Human Resource and Skill Requirements of the Tourism Sector

Page 34 of 59

Function Level Skills required Skill gaps

Front office Front office

manager

Ensure smooth functioning of

the department

Adequate problem solving

skills

Good communication skills

Ability to maintain guest

history and network with

guests

Review room availability

status and promote sales.

Co-ordination with F&B,

Housekeeping etc.

People management skills

Inadequate skills in interact

with guests

Inadequate ability to

proactively review

occupancy and promote

sales.

Inadequate ability to

manage team.

Front office

assistant

Adequate communication

skills

Ability to handle incoming

and outgoing calls - telephone

etiquette.

Facilitating smooth client

check-ins and check-outs

Receiving checkouts

settlement and maintain a

proper account for the same.

Knowledge on various hotel

offerings, procedures, etc.

Familiarity with billing

software

Familiarity with the local

region to guide

guests/tourists.

Inadequate ability to listen

to guests

Inadequate communication

skills

Inadequate customer

orientation

Lack of knowledge about

various service offerings in

the hotel.

Inadequate knowledge of

billing software.

Bell Captain Inadequate supervisory skills

Scheduling the duties for bell

boys

Maintaining arrival and

Communication skill

Supervisory skill

Guest handling

Human Resource and Skill Requirements of the Tourism Sector

Page 35 of 59

Function Level Skills required Skill gaps

departure registers.

Ability to ensure smooth

check-ins and check-outs.

Ability to interact with guests.

Bell Boys Recognising the guest

High curtsy level

Communication skill

Ability to read and write

English

Ensuring the safety of

luggage in the lobby.

Maintain personal hygiene

Inadequate curtsy level

Lack of discipline

Insufficient

communication skills

Travel desk Booking air/hotel/train or cab

based on the requirement of

the guest.

Awareness about the local

areas/site seeing/shopping

areas and suggesting the same

to guest based on their

interest.

Communication skill

Communication skill

Inadequate awareness on

the local areas.

Source: Industry inputs and IMaCS analysis

The profile of persons employed in the F&B services segment is detailed below.

Human Resource and Skill Requirements of the Tourism Sector

Page 36 of 59

Figure 18: Profile of People in Food and Beverage - Services

Source: Primary Research and IMaCS analysis

Table 14: Skill Requirements and Skill Gaps in Food and Beverage - Services

Function Level Skills required Skill gaps

F&B -

Services

Senior

Captain/Captain

Supervisory skills

Ability to manage F&B

Inventory

Basic knowledge of cuisines

Good communication skills

Ability to interact with guests

Ability to manage team of

stewards

Ability to manage customer

complaints

Inadequate people

management skills

Inadequate skills in

handling customer

complaints.

Sr. Steward/

Steward

Ability to handle guests

Good communication skills

Maintaining high level of

hospitality and cleanliness

Taking orders and serving

food and beverages to guests

Inadequate ability to

manage guests

Inability to proactively

interact with guests and

advise on menu.

Graduate/Diploma in Hotel Management/ High

school, 0-4 years of experience

Graduate/Post Graduate/Diploma in

Hotel Management, with 5-8 years of experience

Graduate/Post Graduate/Diploma in

Hotel Management, with over 8 years of experience

Director F&B

Exceutive / Captain

Steward

Restaurant Manager

Service staff

Beverage Manager

Bartenders

Human Resource and Skill Requirements of the Tourism Sector

Page 37 of 59

Function Level Skills required Skill gaps

at tables in a

professional/courteous

manner.

Ensuring correct and timely

pick-up of food from kitchen

for service, in case of delay,

handle the situation.

Ability to inspect kitchens,

workrooms, and equipment

for cleanliness.

Restaurant

Manager

Ability to ensure smooth

functioning of restaurant

Ability to minimise daily

complaints

Interacting with the guest and

explaining the speciality of

cuisines

Ability to manage the shift

Monitoring standards of

facilities

Ability to market the

restaurant, including with

institutions/corporate

Co-ordination with other

departments

Ability to organise parties and

functions.

Inadequate skill in people

management.

Insufficient marketing and

communication skills.

Beverages

Manager

People management

Ability to manage the

operation of bars, cafeteria

services, etc.

Co-ordination with all the

other departments

Ability to organise parties and

Guest handling in bars

Inadequate ability to

address

problems/complaints.

Inadequate communication

skills

Human Resource and Skill Requirements of the Tourism Sector

Page 38 of 59

Function Level Skills required Skill gaps

functions.

Waiter/Waitress

/Service staff

Ability to take orders and

serve food in a professional

and courteous manner

Ensuring cleanliness

Maintain customer

relationship

Being cheerful and

presentable

Insufficient servicing skills

Inadequate communication

skills

Bartenders Ability to converse with guest

to understand their

requirements

Management of production of

cocktails, mocktails, etc,

Inventory management of all

the sprits, soft drinks, etc.

Billing

Poor customer orientation

Inadequate knowledge of

production of cocktails,

mocktails etc.

Inadequate communication

skills

Source: Industry inputs and IMaCS analysis

Human Resource and Skill Requirements of the Tourism Sector

Page 39 of 59

Figure 19: Profile of People in Food Production / F&B - Kitchen

Source: Primary Research and IMaCS analysis

Table 15: Skill Requirements and Skill Gaps in Food Production

Function Level Skills required Skill gaps

Food

Production

Executive

Chef/ Head

Chef

Ability to prepare different

kinds of cuisine

Awareness on food calorific

values.

People management

Administrative skill

Flair for creativity –

Innovation in food

preparation

Food presentation skills

Ability to plan menu

Knowledge on food costing

Quality control

Inventory management

Communication skills

Inadequate awareness on

latest cuisines

Inadequate people

management skills

Inadequate knowledge of

cost management

Sous Chef Assisting Executive Chef

Ability to manage kitchen

operations in case of absence

Inadequate awareness on

latest cuisines

Inadequate ability on

High school/Diploma, 0-4/5 years of experience

Graduate/ Diploma in food production, with 0-3 years of

experience

Graduate in hotel management/Diploma in food production, with 0-4

years of experience

Graduate in hotel management / Diploma in food production, with 5-8

years of experience

Graduate in hotel mangement/Diploma in food

production, with over 8 years of experience

Exceutive Chef

Sous Chef

Line Cook

Commis

Kitchen Assistants

Human Resource and Skill Requirements of the Tourism Sector

Page 40 of 59

Function Level Skills required Skill gaps

of Executive Chef.

Scheduling manpower and

preparing duty sheets.

Menu planning and menu

engineering

Standardising dishes, recipes

etc. – Yield management

Ensuring hygiene and

cleanliness

Training kitchen staff

Quality control of food

Inventory management

Ability to plan and oversee

food production.

Communication skills

management skills related

to menu planning,

scheduling, etc.

Line Cook Knowledge on cuisines

Ability to prepare menu

items

Ensuring hygiene and

cleanliness

Familiarity with all kitchen

equipments

Communication skills

Time management

Insufficient knowledge on

cuisines

Time management

Commis Basic Culinary skills

Hygiene knowledge

Ability to assist line cook

Inadequate culinary skills

Inadequate knowledge of

hygiene

Kitchen

Assistance

Dish washing

Cleaning and handling vessels

etc

Maintain a clean kitchen

environment etc.

Discipline at workplace

Maintaining personal hygiene

Communication skills

Lack of attitude to work

hard

Inadequate knowledge of

hygiene

Inadequate exposure to

Human Resource and Skill Requirements of the Tourism Sector

Page 41 of 59

Function Level Skills required Skill gaps

working in a kitchen.

Source: Industry inputs and IMaCS analysis

Figure 20: Profile of People in Housekeeping and Maintenance

Source: Primary Research and IMaCS analysis

Table 16: Skill Requirements in Housekeeping and Maintenance

Function Level Skills required

Housekeeping Executive -

Housekeeping

Ensure smooth functioning of the

department (such as housekeeping)

People management skills

Problem solving skills

Ability to groom staff

Knowledge of using housekeeping

equipments, vacuum cleaning machines,

laundry, etc.

Ability to interact with guests.

Supervisors Adequate supervisory skills

Ability to plan and allocate work

Ability to inspect rooms

Reporting, daily briefing the staff

Complaint handling

Ability to maintain a polite and cheerful

High School, with 0-4 years of experience

Graduate/Diploma/High School, 3-4 years of

experience

Graduate/Diploma, with 5-8 years of experience

General Manager

Housekeeping Executive

Superviors

Room Attendants

Laundry Manager

Assistants

Chief Engineer

Supervisor Maintenance

Assistants

Supervisor Energy

Assistants

Human Resource and Skill Requirements of the Tourism Sector

Page 42 of 59

Function Level Skills required

appearance/personage.

Room Attendants Daily room cleaning.

Attending to guest requests promptly.

Understanding guest’s needs and

requirements, and servicing accordingly.

Inspecting linens, toilets, consumables etc.

Upkeep of public/common areas,

restaurant, conference hall, etc.

Ability to communicate in English.

Laundry Laundry Manager Ensure smooth functioning of washing

units

Knowledge on chemical mixing and

cleaning

Ability to work in cleaning equipments

Laundry /Linen

Assistants

Collection, sorting and marking.

Loading and unloading of cloths in the

machines, pressing and delivery of guest

laundry and linens.

Maintenance Chief Engineer Ensure proper functioning of all

equipments

Ability to coordinate with related

departments

Ability to assist the management in

planning investments

Engineering administration

Inventory management of spare parts

Ability to handle crises in machinery-

related areas/power supply/generator sets

Supervisor

Maintenance

Ensuring proper working condition of all

machineries

Maintaining schedule

Allocation of work

Human Resource and Skill Requirements of the Tourism Sector

Page 43 of 59

Function Level Skills required

Addressing complaints

Supervisor (Energy) Ensuring uninterrupted supply of energy

Ability to address complaints

Assistants Technical skills in relevant areas, such as

Plumbing, Carpentry, Painting, electricians,

maintaining HVAC systems.,

Source: Industry inputs and IMaCS analysis

In addition to the above, basic computer knowledge is a must for anyone working at supervisory level

and above in all the departments.

2.4. Employment Intensity in Hotels and Restaurants

The following table presents the employment intensity and profile of people across different

categories of Hotels and Restaurants:

Table 17: Employment Intensity and Profile of People – Hotels

Particulars Employment

Intensity*

Profile of people employed

Five, Four Star/Heritage

Hotels

174

Mostly highly trained/skilled with hotel

management degree/diploma

Three, Two & One Star

Hotels

122

Managers & supervisors are generally highly

trained/skilled. Junior staffs are just graduates or

even SSC pass/dropouts

Other Hotels in the

unorganised Sector

22

Very few trained manpower. Most of the

employees consist of untrained manpower

Source: Ministry of Tourism, Government of India; IMaCS analysis; *Employees per 100 rooms

As we can see from the above, Five/Four star & Heritage hotels have the highest employment

intensity and also have the maximum demand for highly skilled/trained manpower.

Table 18: Employment Intensity and Profile of People - Restaurants

Human Resource and Skill Requirements of the Tourism Sector

Page 44 of 59

Particulars Employment

Intensity*

Profile of people employed

Conventional restaurants 26 Generally half of the persons employed in kitchens

of conventional restaurants, cafes and fast food

outlets are diploma holders either from private

hotel management institutions or Food Craft

Institutes. 10-20% of people in F&B Service are

Hotel management degree/diploma holders

Cafes 31

Fast food outlets

32

Dhabas / Bhojanalayas 26 Employ unskilled manpower

Source: Ministry of Tourism, Government of India; IMaCS analysis; *Employees per 100 chairs

The above table depicts that employment intensity is more or similar across all the categories and the

demand for skilled/trained manpower is also similar in all the categories except Dhabas/Bhojanalayas.

Human Resource and Skill Requirements of the Tourism Sector

Page 45 of 59

3. Current Skill Development Initiatives in the Tourism Industry

The Government, through the Ministry of Tourism, is engaged in several activities for skill

development. The Government is engaged in making available trained human resource through its

network of Institutes of Hotel Management and Indian Institutes of Tourism and Travel Management.

3.1. NCHMCT, IHM, FCI programmes

The Government established the National Council for Hotel Management and Catering Technology

(NCHMCT) in the year 1982. The NCHMCT and its affiliate institutes impart MSc programmes in

Hospitality, Diploma, and Certificate Courses.

There are about 41 Institutes of Hotel Management (IHMs) and 5 Food Craft Institutes (FCIs) in the

country offering such courses. The PG, Diploma, and Certificate Courses are offered are detailed

below.

Human Resource and Skill Requirements of the Tourism Sector

Page 46 of 59

Table 19: PG, Diploma, and Certificate Courses offered by IHMs through NCHMCT

S.No. Course Duration Qualification Upper Age

Limit

Location of Institutes where Course is

available 1. M.Sc. Hospitality

Administration 2 Years B.Sc.in H.M.

or 3 yr Diploma in HM

NA IHM – Bangalore, Delhi, Mumbai

2. Post Graduate Diploma in Accommodation Operation and Management

1½ Years Graduation in any Stream

25 IHM - :Bhopal, Bhubaneswar, Mumbai, Kolkata, Chennai, Delhi (Pusa), Gwalior, Hyderabad, Shimla, Thiruvananthapuram , Faridabad (FCI)

3. Post Graduate Diploma in Dietetics and Hospital Food Service

1 Year Graduate with Science or Bachelor in Home Sc.

25 IHM - Chennai, Delhi (Pusa) and Mumbai

4. Craftsmanship Course in Food Production

1½ Years 10th Class pass of 10+2

22 IHM - Bhopal, Bhubaneswar, Mumbai, Kolkata, Chennai, Goa, Gwalior Shimla, Delhi (Pusa), Thiruvananthapuram

5. Craftsmanship Course in Food and Beverage Service

24 weeks 10th Class pass of 10+2

22 IHM - Mumbai, Kolkata, Chennai, Goa, Shimla

6. Certificate Course in Hotel and Catering Management

6 Months Class XII of 10+2 system or equivalent

NA IHM : Mumbai, Chennai

7. Diploma in Food Production

1½ Years 10+2 or equivalent

22 FCIs - Ajmer, Chandigarh, Darjeeling, Faridabad, Gangtok, Jodhpur, Udaipur

8. Diploma in Food and Beverage Service

1½ Years 10+2 or equivalent

22 FCIs - Ajmer, Chandigarh, Darjeeling, Faridabad, Gangtok, Jodhpur, Udaipur, IHM-Delhi (Pusa

9. Diploma in Front Office 1½ Years 10+2 or equivalent

22 FCIs - Ajmer, Chandigarh, Darjeeling, Faridabad, Gangtok, Jodhpur, Udaipur

10. Diploma in House Keeping

1½ Years 10+2 or equivalent

22 FCIs - Ajmer, Chandigarh, Faridabad, Jodhpur, Udaipur

11. Diploma in Bakery and Confectionery

1½ Years 10+2 or equivalent

22 FCI - Chandigarh, IHM- Delhi (Pusa)

Source: NCHMCT

Human Resource and Skill Requirements of the Tourism Sector

Page 47 of 59

The NCHMCT through IHMs and FCIs also offers 3/6 month certificate courses in the following

areas:

Food Production

F&B

3 month Crafts Courses.

3.2. Capacity Building for Service Providers

There are a large number of persons who are engaged in the unorganised sector such as small hotels,

road-side eating places, ticketing/ travel agencies, dhabas, etc. There is also a segment of tourism

service providers who are engaged in other professions but come in contact with the tourist. These

persons are staff at bus/ railway stations, police personnel, immigration staff at airports, coolies, taxi/

coach drivers, staff at monuments, guides etc. The tourists come into contact with various service

providers and it is this experience they have, while interacting, that governs their experience of India

as a tourist destination.

It was therefore felt necessary that this large number of service providers be given certain inputs

which can improve their behavior and service levels. Therefore a Scheme was formulated wherein

these service providers in the unorganised sector are given some inputs so as to upgrade their behavior

and service skills. This Scheme is the ‘Capacity Building for Service Providers (CBSP)’.

Some of the important areas being covered under the training include health & personal hygiene,

cleanliness, basic service techniques, cooking techniques, garbage disposal, etiquette and basic

manners, basic nutrition values, etc. Energy saving and basic tourism awareness, communication

skills, behaviour skills, first aid, client handling and behavioural skills, etc. are also covered in the

training programmes. The duration of the course ranges from 4 days to 6 days.

The trainings that can be offered by service providers under the guidelines of this Scheme are outlined

in the following table.

Table 20: Certificate Courses under the CBSP scheme

S. No. Training Duration

i. Guide Training Courses

Induction Training Programme for Regional Level Guides

Refresher Level Course for Regional Level Guides

Duration 10 Days Programme

ii. Skill Up-gradation in general for existing Duration 3 months (class/lab)

Human Resource and Skill Requirements of the Tourism Sector

Page 48 of 59

S. No. Training Duration

service providers iii. Language courses for Guides and other

service providers Duration 3 months (class/lab)

iv. Skill Development in general for fresh candidates

Duration 6 months (class/lab)

v. Promotion of rural tourism in the villages based on present programme being implemented with UNDP assistance

Duration 3 – 6 months

vi. Training programs for the training of trainers

Duration 15 – 30 days

vii. Tourism Awareness Programme Duration 4 - 6 days viii. Customised Programmes

Suo-moti Initiatives of the Ministry of Tourism

Need-Based

Source: Ministry of Tourism

3.3. Indian Institutes of Tourism and Travel Management (IITTM)

The Indian Institute of Tourism and Travel Management (IITTM), an autonomous organisation of the

Ministry of Tourism, Government of India, is one of the premier institutes in the country offering

education, training, research and consultancy in sustainable management of tourism, travel and allied

sectors. The IITTM came into being on 1983 with its registration at New Delhi. The IITTM has its

headquarters at Gwalior (set up in 1992) with centres at Bhubaneswar (set up in 1996) and Noida.

In the year 2004, the National Institute of Water Sports (NIWS), Goa was also incorporated in the

IITTM. It has been decided to set up another centre of the IITTM at Nellore in Andhra Pradesh. The

management of the IITTM vests in its Board of Governors having the Union Minister for Tourism as

Chairperson.

This multi-campus Institute offers various programmes in tourism and related fields, services and

international business along with various extension programmes for capacity building. Faculty of

institute is also engaged in research and consultancy addressing local needs.

The IITTM presently offers 4 AICTE approved PGDM programmes from its three centres. As of now

the student intake in each programme is 69 which is likely to go up to 93 by 2010.

Table 21: Courses offered under IITTM

Centre Topic areas Details

Gwalior Tourism and Travel Ticketing, Cargo management and Tour operations

International Business International Tourism, International Trade Operations, etc

Human Resource and Skill Requirements of the Tourism Sector

Page 49 of 59

Centre Topic areas Details

Services Tourism-Hospitality and others

Bhubaneswar Tourism and Travel Ticketing, Cargo management and Tour operationsInternational Business International Tourism, International Trade Operations,

etc.Delhi Tourism and Leisure Adventure/ MICE

The Ministry of Tourism has also formulated a scheme for Financial Assistance to IHMs, FCIs,

IITTM, ITIs, Polytechnics, Institutes, Vocational Schools, etc. for the setting up and upgradation of

Institutes of Hotel Management & Catering Technology & Applied Nutrition (IHMs), Food Craft

Institutes (FCIs) in the country.

As is seen above, the Government/Ministry of Tourism has taken several initiatives to build skills in

the Tourism sector.

However, given the large requirement of human resource (as outlined in the following section),

there exists room for training providers to further offer training and build skills in the Tourism

sector in areas highlighted in this section and also under the section titled ‘Possible Focus Areas

for Skill Building’.

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Human Resource and Skill Requirements of the Tourism Sector

Page 51 of 59

However, this includes the employment due to tourism related activities in ‘satellite’ industries as

well6 (effect of tourism on industries such as food processing, railways and road, footwear, toiletries,

etc., and the effects on employment thereof)

For the purpose of this study and further projections, we consider employment – human resource

requirement – in the ‘core tourism sectors’ – Hotels and Restaurants, and Tour Operators.

The overall employment by 2022 in the Tourism Industry (in Hotels and Restaurants and Tour

Operators) is estimated to be about 7.2 million persons. Segment wise details are given below.

Table 23: Human Resource Requirements in Tourism Industry (in ’000s)

2008 2012 2018 2022 Incremental

(2008-2022)

Hotels 1,289 1,869 2,939 4,065 2,775

Restaurants 2,112 2,481 2,639 2,834 723

Tour Operators 129 164 220 273 144

Total 3,530 4,514 5,798 7,172 3,642

Source: Ministry of Tourism, Government of India and IMaCS Analysis

The details of human resource requirement for Hotels, Restaurants, and Tour Operators is detailed

below.

4.3. Projected Human Resource Requirement for Hotel Segment

The human resource requirement for Hotels and Restaurants is presented below.

Table 24: Projected human resource requirement –Hotels (in ‘000s)

Particulars 2008 2012 2018 2022

Hotels

Five, Four Star/Heritage Hotels 76 91 104 117

Three, Two & One Star Hotels 60 66 79 88

Other Hotels in the unorganised Sector 1,153 1,712 2,756 3,860

Total 1,289 1,869 2,939 4,065

Source: Ministry of Tourism, Government of India and IMaCS Analysis

6 Refer report ‘Tourism Satellite Account for India’, Ministry of Tourism

Human Resource and Skill Requirements of the Tourism Sector

Page 52 of 59

Apart from the above there are substantial numbers of eating places, to cater to both the commercial

as well as leisure road travellers along the national and state highways. These units are estimated to

employ 1,300,000 employees in 2002.

It should be kept in that apart from the employment generation for skilled/trained manpower arising

out of new establishments, there would be additional employment generation for skilled/trained

manpower from the conversion of the unorganised sector to organised sector.

As seen in the above table, the employment in the hotel category (excluding motels along the

highway) is forecasted to increase to over 1.9 million in 2012, 2.9 million by 2018 and 4 million in

2022. This will create an incremental employment opportunity in the following major functions:

Table 25: Incremental Human Resource Requirement for Hotels (in ‘000s) till 2022

Function Incremental human

resource requirement (in

‘000s)

Front office 5

F&B Services 583

F&B Kitchen 393

Housekeeping 634

Total Incremental Requirement 2,772

Source: Ministry of Tourism, Government of India; Primary Research and IMaCS Analysis

Though Front office accounts only for around 8% of the work force, they play a critical role in the

development of the business and our interactions with the players revels that the current skill sets

available for the front office are not up to the extent required.

Table 26: A Further Break-Up of Incremental Human Resource Requirement till 2022 – Hotel (in ‘000s)

Function Incremental Human Resource Requirement (in

‘000s) Front office

Managers 1.2

Supervisors 1.4

Front Office Assistants 2.7

F&B Services Managers 23.8

Human Resource and Skill Requirements of the Tourism Sector

Page 53 of 59

Function Incremental Human Resource Requirement (in

‘000s) Captains 37.0

Stewards 125.8

Waiters 396.4

F&B Kitchen Chefs 20.5

Cooks 199.6

Kitchen Assistants 173.1

Housekeeping Managers 12.9

Supervisors 51.2

Room Attendants 429.4

House-men 140.6

Source: Ministry of Tourism, Government of India; Primary Research and IMaCS Analysis

4.4. Projected Human Resource Requirement for Restaurants

Segment

The incremental human resource requirement in the Restaurants category is estimated to be around

0.72 million. In this, about 50% of the incremental requirement (0.34 million) would be in the

Conventional Restaurants category.

Table 27: Employment Forecasts (in thousands) –Restaurants

Particulars 2008 2012 2018 2022

Restaurants

Conventional restaurants 1,143 1,315 1,392 1,482

Fast food stores 368 438 469 507

Cafes 367 451 483 527

Dhabas/Bhojanalaya 233 277 295 318

Total 2,112 2,481 2,639 2,834

Source: Ministry of Tourism, Government of India and IMaCS Analysis

The details of incremental human resource requirement in Conventional Restaurants is shown below.

Table 28: Incremental Employment for Conventional Restaurants till 2022 (in ‘000s)

Human Resource and Skill Requirements of the Tourism Sector

Page 54 of 59

Function Incremental Human

Requirement till

2022 (in ‘000s)

Management 7

Kitchen 129

Service 142

Others 61

Total Increment (2008-2022) 339

Source: Ministry of Tourism, Government of India; Primary Research and IMaCS Analysis

Table 29: A Further Break Up of Manpower Requirement – Conventional Restaurants (in ‘000s)

F&B Kitchen

Chefs 12

Cooks 62

Assistants 55

F&B Service

Managers 6

Captains 17

Butlers/Stewards/Waiters 120

Source: Ministry of Tourism, Government of India; Primary Research and IMaCS Analysis

4.5. Projected Human Resource Requirement for Tour Operators

Segment

The key functions among travel agencies and tour operators are those of group tours, ticketing, and

accounts. These account for 55% of all the employees in this sector. The tour section employees a

substantial numbers of causal workers (to the extent of 20%).

Travel trade is estimated to employ approximately 0.13 million people in 2008. This number is

estimated to grow to 0.16 million by 2012 and 0.22 million by 2018. Travel trade is estimated to

employ 0.3 million by 20227, leading to an incremental human resource requirement of 0.14 million.

Table 30: Function-wise Incremental Human Resource Requirement till 2022 – Travel Trade/Tour Operators (in ‘000s)

7 Ministry of Tourism, Government of India and IMaCS analysis

Human Resource and Skill Requirements of the Tourism Sector

Page 55 of 59

Functions Incremental Requirement (2008 – 2022)

Ticketing 36

Accounts 21

Tours 22

Administration 18

Operations 16

Sales & Marketing 8

Others 22

Total 144

Source: Ministry of Tourism, Government of India; Primary Research and IMaCS Analysis

4.6. Possible Focus areas for Skill Building

Based on our interaction with industry, and as detailed in the above sections, a large portion of the

demand for human resource would occur in the following areas:

Hotels and Restaurants: Front office staff, F&B Services and Kitchen, and Housekeeping

staff

Tour operators: Ticketing and Sales, Tour Guides.

The broad contours for skill development in these areas are outlined below:

Table 31: Focus Areas – Hotels and Restaurants

Function Skill Requirement

Front Office Technical skills

Managing guests

Call handling – incoming and outgoing

Billing

Maintaining registers

Paying attention to details

Soft skills

Communication skills

Team work skills

Attitude to listen

Behavioural and interpersonal skills.

Human Resource and Skill Requirements of the Tourism Sector

Page 56 of 59

Function Skill Requirement

F&B Services Technical skill

Managing guests

Adequate knowledge of menu and cuisines

Cleanliness and hygiene

Simple Billing

Complaint handling

Soft skill

Communication skills

Dedication to work

Behavioural skills

F&B Kitchen Technical skill

Latest cuisines

Innovation/creative skill towards developing new

offerings

Handling kitchen equipments

Yield management

Staff management

Cost management

Hygiene and cleanliness

Soft skill

Communication skills

Time management skills

Behavioural skills

Attitude to work

House Keeping Technical skill

Inspection of rooms, consumables, etc.

Complaint handling

Responding to guest requirements

Up keeping of public places, restaurants,

conference halls etc.

Cleanliness and hygiene

Ability to use all the housekeeping equipments

Soft skill

Team work

Communication skills

Human Resource and Skill Requirements of the Tourism Sector

Page 57 of 59

Function Skill Requirement

Attitude to work

The broad contours of skill development in Tour Operators is detailed below.

Table 32: Focus Areas – Travel and Tour Operators

Function Skill Requirement

Ticketing Technical skill

Passenger routing skills

Ability to act as a travel advisors

Maintaining a cordial relationship with the

clients/travellers

Geographical knowledge

Knowledge on various hotels and site seeing

locations

Networking skills

Ability to use ticketing software – Amadeus, etc.

Procedural knowledge on Visa/ Passports

Soft skills

Time management

Telephone etiquette

Communication skills

Tours – Guides Technical skill

Knowledge/ awareness on the area, people, culture

etc.

Historical knowledge/significance of tourist

locations

Skill to handle tourists

Skill to understand the tourist requirements

Decision making skills

Organising ability

Soft skills

Time management

Communication skills.

Human Resource and Skill Requirements of the Tourism Sector

Page 58 of 59

The human resource requirement in the above areas account for more than 85% of the incremental

human resource requirement in the Tourism Sector and would be possible areas to target skill building

initiatives.

The current initiatives of underway by the Government (under the Ministry of Tourism) are already in

the above direction. However, keeping in mind the large demand, there is further scope for training

providers and other agencies to channelise efforts in skill building in the above areas.

Human Resource and Skill Requirements of the Tourism Sector

Page 59 of 59

This report has been prepared by ICRA Management Consulting Services Limited (IMaCS).

IMaCS is a multi-line management and development consulting firm headquartered in India. It has an

established track record of over 15 years in consulting across various sectors and countries. IMaCS

has completed over 950 consulting assignments and has worked in over 30 countries across the globe.

Through the process of carrying out several assignments over the last decade and half, IMaCS has

accumulated considerable analytical and consulting expertise, backed by the following capabilities:

• Deep understanding of policy formulation.

• Extensive and organised database on several sectors.

• Knowledge of key factors of success in different projects and programmes.

• Ability to research emerging trends in the economy, as well as in specific sectors.

• Insight into different programmes and organisational processes.

• Ability to carry out economic analysis, build quantitative and financial models to project future

performance and identify imperatives.

• Ability to identify the various types of risks and suggest appropriate strategies to mitigate the

same.

The Education and Skills practice at IMaCS focusses on identifying skill gaps, mapping future skill

requirements, and formulating strategies to address them. Our service offerings encompass diagnosis,

design and implementation of education and skill development interventions for government and

private sector.

R. Raghuttama Rao

Managing Director

IMaCS

4th floor, Electric Mansion

Appasaheb Marathe Marg, Prabhadevi

Mumbai – 400 025

Tel: 91 22 3047 0047, Fax: 91 22 3047 0081

Email: [email protected]

M. Sairam

Head – Process Consulting

IMaCS

5th floor, Karumuttu Centre

634, Anna Salai, Nandanam,

Chennai – 600 035

Tel: 91 44 2434 0043, Fax: 91 44 2434 3663

Email: [email protected]

National Skill Development CorporationD-4, Clarion Collection, (Qutab Hotel)Shaheed Jeet Singh MargNew Delhi 11 0 016Tel : 011 46 56 0414Fax : 011 4656 0417Email : [email protected] www.nsdcindia.org